CRUISE operator P&O Princess has reported a fall in third-quarter profits, after the September 11 attacks on the United States.

CRUISE operator P&O Princess has reported a fall in third-quarter profits, after the September 11 attacks on the United States.

The group said pre-tax profits for the three months to September 30 fell to #121m, down from #123m for the same period last year.

One-off charges relating to disruption following the attacks - including increased promotion costs - added up to #8.5m.

P&O added the earnings outlook for next year was uncertain and would be heavily influenced by the political and economic environment from January to March - its key booking period.

Peter Ratcliffe, chief executive said: "We had two weeks when there were significant cancellations and there were bookings less than we were anticipating - when the whole of America was shocked and stunned by the events.

He said the firm had been trying to get people back by upping promotional activities, while it had moved operations out of "sensitive areas such as the Middle East".

P&O Princess, which had warned in September of a #2m to #3.5m charge following the attacks, added there had been a return to more normal levels of booking, driven by its promotional activity.

The group said in the first two weeks after the attacks, there was a net loss of 8,000 bookings from North America, compared with an expected increase of about 12,000.

Bookings improved, but were hit again by concerns over the anthrax scares, although the group is seeing an improvement now.

European bookings were affected to a lesser extent, and the summer UK season was proving to be "very resilient".

Shares in the firm - which have slid from 360p on Monday September 10, put back some of their recent losses, rising 91/2p to 222p.